Fed members raise specter of higher interest rates

by The Real Estate Faction on April 5, 2011

Federal Reserve officials raised concerns last month that a big jump in energy prices could weaken the economy and unleash inflation, prompting some to suggest the possibility of tightening credit this year.

That usually involves boosting interest rates. The minutes of the Fed’s closed-door meeting released Tuesday did not specify if that’s what the members meant and they didn’t name the members who suggested a change in policy might be warranted.

It simply noted that a “few members” raised that point.

Other Fed members said the Fed might need to keep holding interest rates at record low levels beyond this year.

The differing viewpoints about potential policy actions in the future highlight a growing number of uncertainties facing an economy that they all seemed to agree was improving.

So get out there and purchase a home before interest rates rise!!


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